[berrow]

Aside from the lack of full transparency, are you saying that generalized second-price auctions are not really auctions or that auctions with reserve prices are not really auctions?

[patio11]

I'm saying that if the auctioneer can assign prices unrelated to the content of bids received, then yes, that is not an auction.

Compare with eBay, a true auction:

Single bid at 5 cents, hidden reserve of $1 (eBay): no sale takes place.

Single bid at 5 cents, hidden reserve of $1 (Google): no sale takes place.

Single bid at 5 cents with maximum bid of $1, hidden reserve of $1 (eBay): no sale takes place.

Single bid at 5 cents with maximum bid of $1, hidden reserve of $1 (Google): sale takes place at $1. (I think almost nobody knows this happens.)

Two bids of 5 cents and $1 (eBay): the bid of $1 wins.

Two bids of 5 cents and $1 (Google): the side who Google says wins, wins, at a price which is somewhere between 0 cents and $1.